London: EY has reported combined global revenues of US$25.8 billion for its financial year ended 30 June 2013. This represents 7.7% growth over the previous financial year in local-currency terms, EY's fastest growth since 2008. Revenues grew 5.8% in US dollar terms. All EY's service lines and geographies continued to grow revenues and headcount despite uneven market conditions in many parts of the world.
- Fastest growth in five years of 7.7%
- Revenues improve across all service lines and geographies
- Emerging-market practices see combined revenue growth of 12%
- Headcount reaches all-time high of 175,000
"I congratulate our 175,000 great people around the world for providing exceptional, high quality service to our clients, contributing to our strong sense of purpose, and delivering an impressive set of results. Everything we have accomplished this year is due to them and I am extremely grateful for everything they have done," says Mark Weinberger, EY's Global Chairman and CEO.
"To achieve a robust performance despite a difficult economic environment in the last 12 months demonstrates their talent and energy as well as their commitment to quality.
"Looking forward, there remain significant economic and geopolitical uncertainties in developed and fast-growth emerging markets. Despite these short term uncertainties, we continue to invest for the long term. In FY14 we are demonstrating our confidence in the future of the global economy and our profession by investing heavily in new markets and new services as well as planning to add 55,000 new recruits and interns over the next 12 months."
John Ferraro, EY's Global Chief Operating Officer comments, "Across all of our service lines we continue to perform well in a highly competitive and challenging market place." Growth in all of EY's service lines was almost entirely organic.
Advisory achieved its third year of double-digit growth in FY13, with revenue of US$5.8b and growth of 18%. This strong organic growth is against a backdrop of slower growth in the wider market for Advisory services. EY says these results reflect a "strategic focus on leveraging all our core consulting and technology competencies on delivering transformational Risk and Performance Improvement services in high-growth sectors."
Performance highlights by region
Americas revenues were up by 10.4% in FY13 with strong growth in both North and South America. The highlights included 10% growth in the US and 24% growth in Brazil. This revenue increase was primarily driven by EY's Advisory and Financial Services practices.
Europe, Middle East, India and Africa saw good growth of 7% given the ongoing economic problems in several countries. There were strong individual performances from emerging markets such as Turkey (19%), India (17%), the Middle East (13%) and Africa (11%) but also in developed countries such as Italy (9%) and Germany (8%).
Despite weakening economic conditions across parts of the region the Asia-Pacific practice grew by 3.9%, led by strong growth of 10% in China. Vietnam was another highlight with an increase of 14%.
Japan saw a welcome return to modest growth of 0.8% after several years of flat revenues despite the slower economic recovery in the country. Overall, emerging markets practices had a combined revenue growth of 12%.